In Issue 11 of The OHL Wire, we look at what will change on 1 July 2015 and how does divorce affect your tax and super fund. We also look at everything you need to know about taxation and deceased estates in Australia. We discuss the rules and requirements for buying property through a self-managed super fund (SMSF) in NSW. We check out upcoming events in Sydney and provide you a few ideas on how to spend your tax refund as the tax year is coming to an end.
A summary look at the effects the 2014 Australian Federal Budget may have on you and your businesses as well as the economy. Post Budget presentation by Hanrick Curran, Chartered Accountants in Brisbane Australia
A summary look at the effects the 2014 Australian Federal Budget may have on you and your businesses as well as the economy. Post Budget presentation by Hanrick Curran, Chartered Accountants in Brisbane Australia
This is a short description of how all the tax changes in 2010 impact your 2011 tax year. This was drafted presented on January 27, 2010, so additional changes might have occurred to impact the posted information. Check with your attorney or CPA to confirm this information.
Attached is an excellent, easy to read newsletter summarizing the important changes, legislative extensions, and issues relating to your individual tax return for 2009 and beyond. Please read it well before 12/31 as there are items that need to be considered or acted upon before the end of this year to take full advantage of the legislation. It’s the best one I’ve come across. Its current and includes some commentary, planning suggestions, and even some health care issues as they relate to your taxes.
I will later post a copy of year end letters for both businesses and individuals that my clients receive.
If you should have any questions at this time on any of these items, please contact me anytime.
Thanks
Wally Wleklinski
Payroll Webinar: A to Z of Garnishments Part 1Ascentis
In this three part series on the proper handling and processing of garnishments we will discussed the rules, regulations and requirements as they apply to withholding and paying child support, tax levies, creditor garnishments and others.
In Part 1 we focus on Child Support. Payroll departments must know both the federal laws and the state laws and must determine which one applies to the child support withholding order. In addition to these laws and regulations, the federal rules now require that a standard Income Withholding Order (IWO) be used for all child support withholding garnishments. This webinar will review this form and its requirements. And although the IWO can include all the information necessary to comply with the order, employers must familiarize themselves with both federal and state regulations to avoid penalties and liabilities. Withholding monies for child support is not the only requirement that applies to providing for a child, medical support orders are required to be process by payroll as well. And these orders have their own rules and regulations on both the federal and state level.
Aventus Partners Business Financial and Human Capital Outlook 2012-13MP Sriram
An annual forecast of business , financial and human capital trends that we foresee in india for the year 2012 -13 basis our analysis and understanding of the current economic and business environment.
This is a short description of how all the tax changes in 2010 impact your 2011 tax year. This was drafted presented on January 27, 2010, so additional changes might have occurred to impact the posted information. Check with your attorney or CPA to confirm this information.
Attached is an excellent, easy to read newsletter summarizing the important changes, legislative extensions, and issues relating to your individual tax return for 2009 and beyond. Please read it well before 12/31 as there are items that need to be considered or acted upon before the end of this year to take full advantage of the legislation. It’s the best one I’ve come across. Its current and includes some commentary, planning suggestions, and even some health care issues as they relate to your taxes.
I will later post a copy of year end letters for both businesses and individuals that my clients receive.
If you should have any questions at this time on any of these items, please contact me anytime.
Thanks
Wally Wleklinski
Payroll Webinar: A to Z of Garnishments Part 1Ascentis
In this three part series on the proper handling and processing of garnishments we will discussed the rules, regulations and requirements as they apply to withholding and paying child support, tax levies, creditor garnishments and others.
In Part 1 we focus on Child Support. Payroll departments must know both the federal laws and the state laws and must determine which one applies to the child support withholding order. In addition to these laws and regulations, the federal rules now require that a standard Income Withholding Order (IWO) be used for all child support withholding garnishments. This webinar will review this form and its requirements. And although the IWO can include all the information necessary to comply with the order, employers must familiarize themselves with both federal and state regulations to avoid penalties and liabilities. Withholding monies for child support is not the only requirement that applies to providing for a child, medical support orders are required to be process by payroll as well. And these orders have their own rules and regulations on both the federal and state level.
Aventus Partners Business Financial and Human Capital Outlook 2012-13MP Sriram
An annual forecast of business , financial and human capital trends that we foresee in india for the year 2012 -13 basis our analysis and understanding of the current economic and business environment.
The Chancellor gave a combined Spending Review and Autumn Statement on 25 November 2015. He announced a number of measures that will affect businesses, individuals and the UK as a whole.
We have produced a 12 page Autumn Statement report which includes details of these, including sections on business initiatives, pensions, changes to personal allowances and more.
The following blog focuses on a number of areas in relation to the 2014-15 budget that will be of interest to human resources and payroll professionals.
As a continuation of my last article, “tax the Rich…Tax the Rich…Tax the Rich…,” I asked Brian Seifert, CPA to fill in some additional tax changes that would affect our clients as we approach the year end and look forward to 2010. Brian is a new Aegis Council member who is helping our clients prepare for the onslaught of new taxes by identifying tax planning opportunities, assist the clients taking advantage of their planning opportunities then preparing the tax returns as part of the Aegis Council Tax Planning Package. Every Aegis Council member has undergone a thorough background check and peer reviews to insure only the best and brightest professionals are provided to our clients.
Skp global expansion updates-February 2016Partha Pant
This is an update that covers employment, payroll, GST/VAT,
and corporate tax related developments globally. It is especially relevant for organisations with overseas operations
Cardens Accountants Covid19 client handout Laura Comben
We are all feeling the impacts of Covid-19 in both our businesses and in our daily lives. Over the past week the government have been reacting to Covid-19 by introducing several reliefs and support for your businesses to help negate this extremely challenging and unprecedented time in our lives. To help, we have taken the time to list these reliefs and more importantly when and where you can access them.
https://cardensaccountants.com/
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The OHL Wire ISSUE 11 - What Will Change On 1 July 2015
1. June 2015
2 86 11page pagepage
LEGAL - WEALTH PROTECTION - INVESTMENT - BUSINESS - LIFESTYLE - SYDNEY
page10page
Issue 11
What Will Change On
1 July 2015
Divorce, Tax and Super Taxation and Deceased
Estates
SMSFs Investing in
Property: the Laws and
Regulations
The Five Smartest Ways
to Spend Your Tax Refund
2. What Will Change On
The government's recent budget outlines a broad set of changes.
Many of these changes are intended to take effect from 1 July 2015.
This article sets out some of those changes.
PAGE 2 OWEN HODGE LAWYERS
1 J U L Y 2 0 1 5
Federal Budget 2015 - 2016
Family Tax Benefit
FTB Part B: the income test will be lowered such that to be
eligible, the payment will be available to families until the
youngest child turns 6
FTB Part A: families with more than one child will no longer
receive an add on amount per child
Employment ServicesFor Job Seekers
For Employers
For work for the dole hosts
Personal and Business Tax, Levy and Deduction Changes
Business Tax Cuts: The 1.5% tax cut for small businesses and 5% tax cut for incorporate
businesses
Medicare Levy : Increase to $20896
Changed tax rules to MITs
New way of calculating car
expenses claims
Aged Care Scheme
New rules relating to home care packages
Introduction of the Commonwealth Home Support
Programme
First Home
Saver Accounts
First Home Saver Accounts
will be treated like any
other bank account
EmployeeShareSchemes
Specialconcessionsforsmallstart-upcompanies
3. OVER 60 YEARS OF TRUSTED EXPERIENCE PAGE 3
The Federal Budget
2015-2016
Family Tax Benefit
The Family Tax Benefit (FTB) is a two part payment that helps with the cost of raising children. The benefit is split
into Part A and Part B. FTB Part A is paid for each child and will depend on each family's circumstances. FTB Part B
is to provide extra assistance to single parents or families with one income.
From 1 July 2015, the FTB will change. For FTB Part A, families with more than one child will no longer receive an
add on amount per child. The Large Family Supplement will be paid for those families that are eligible for the FTB
Part A and have four or more children. For FTB Part B, the income test will be lowered such that to be eligible, the
primary earner cannot earn more than $100,000. From 1 July 2015, FTB Part B payments will be available to
families until the youngest child turns 6.
The changes will be implemented automatically from 1 July 2015. Consequently, you should examine these
changes carefully to determine whether you will be affected so that you will be prepared for any decrease in the
payments made to you.
Employment Services
From 1 July 2015, Job Services Australia will be replaced by a new employment service called jobactive.
For employers and work for the dole hosts
Employers who have taken on an employee
through Job Services Australia will continue
to be supported. Job Services Australia will
contact employers and
work for the dole hosts directly:
• about the effect of the changes on them;
• to inform them of the new organisation that
will help them going forward; and
• about the arrangements for any current
employers/work for the dole participants.
For job seekers
The government states that if you are currently using
Job Services Australia, you will have received a letter in
mid-April outlining the changes and what you need to do.
You should also have received a letter in late May – early
June to inform you which jobactive organisation will be
yours going forward.
The government emphasises that until you receive a letter
that tells you to do something different you must carry on
working with your current Job Services Australia provider as
normal. You must also continue to carry out all your other
obligations, such as attending appointments, training,
interviews, etc, as normal.
FREE FOR JOB
4. The Federal Budget
2015-2016
Personal and Business Tax, Levy
and Deduction Changes
TAX
Business Tax Cuts
Perhaps one of the most well publicised tax cuts in the budget was for small
businesses earning up to $2 million. The 1.5% tax cut for small businesses
and 5% tax cut for incorporated businesses will commence on 1 July 2015.
There were no other significant tax rate changes announced during the budget.
However, the situation in relation to tax rates remains unclear due the previous
government's tax cuts, which are due to take effect on 1 July 2015. The current
government has stated that they will not proceed with these tax cuts and has
introduced a bill before parliament to repeal the proposed tax cuts.
Professional
Expenses $
Businesses will no longer have
to write off professional
expenses over 5 years,
such as the cost of
incorporating a company.
From 1 July 2015, new businesses
will be able to immediately deduct
expenses that they incur in setting
up their business.
Medicare Levy
$
From 1 July 2015, the Medicare
Levy low income threshold for
individuals will increase to $20,
896. Once applicable, the levy
remains at 2%.
Car Expenses Claims
From 1 July 2015, individuals claiming car expenses
will no longer be able to calculate their claims through
the following methods:
• 1/3 of expenses; or
• 12% of the cost of the car.
When calculating their car expenses, individuals will have
to choose between the following methods:
• 66 cents per kilometre; or
• logbook.
Zone Tax OffsetTAX
From 1 July 2015, there will be
changes to the eligibility of the
Zone Tax Offset (ZTO).
The ZTO is the concessional tax
offset available for individuals who
live in very isolated and remote areas
to recognise the costs associated with
living in those extremes.
From 1 July 2015, workers designated as
fly-in, fly-out workers or drive-in,
drive-out workers will no longer
be eligible to claim the ZTO.
OVER 60 YEARS OF TRUSTED EXPERIENCEPAGE 4
Managed Investment Trusts
From 1 July 2015, managed investment trusts (MITs) can
choose to be subject to changed tax rules. These tax rules
will apply to all MITs from 1 July 2016. These tax rules are
designed to simplify the current system, increase certainty
and minimise compliance costs. The option to start
applying the rules early is to ensure a smooth transition to
the new rules.
5. The Federal Budget
2015-2016
Australian Border Force
From 1 July, the
enforcement of customs
and immigration laws and
the protection of Australia's
borders will be carried out
by a single entity called the
Australian Border Force (ABF).
The ABT will be administered
by a newly constituted the
Department of Immigration
and Border Protection (DIBP).
Aged Care Scheme
From 1 July 2015, a number of changes to the
aged care scheme will come into force.
In brief, changes to the law include:
• the requirement to ensure that all information
put on the My Aged Care service providers portal
is accurate and up to date
• the introduction of the Commonwealth Home
Support Programme designed to help the aged
stay independent for longer
• new rules relating to home care packages
$ First Home
Saver Accounts
The government has
been making a
number of changes
to the first home saver
account scheme.
From 1 July 2015, first
home saver accounts
will be treated like any
other bank account.
Employee Share Schemes
From 1 July 2015, the government intends to make changes to the
taxation of employee share schemes (ESS).
An ESS allows employees to become part owners of their employer.
The changes intended by the government to come into effect on 1
July offer various tax concessions to employees who participate in
ESS including - special concessions for small start-up companies and
deferred taxation. Each ESS has its own rules relating to the price,
vesting and subsequent sale of the shares it provides to employees.
Superannuation Dual
Regulated Entities (SDRE)
$
Up until 1 July 2015, SDREs are exempt from
certain obligations in relation to adequate
resourcing (including financial, human and
technological) and risk management systems
in relation to non-superannuation business.
From 1 July 2015, SDREs will no longer be
exempt from these requirements.
The Australian Securities and Investment
Commission (ASIC) and the Australian Pruden-
tial Regulation Authority (APRA) have written
to all trustees outlining these changes in detail.
OVER 60 YEARS OF TRUSTED EXPERIENCE PAGE 5
Other Changes
6. PAGE 6 OWEN HODGE LAWYERS
Who gets what?
Divorce,
Tax and Super
In 2013,
• There were 47,638 divorces granted in Australia
• The median age at divorce for males was 44.8 years of age
and the median ages of females was 42.2 years of age for the
divorces granted
• The largest proportion of divorce applications were from joint
applicants, accounting for 41.2% of divorces.
• Female applicants accounted for 32.9% of divorce
applications while male applicants accounted for 25.9%.
7. Divorce and the resultant property settlement are determined
separately. That means you do not need to wait until your
your assets.
While a divorce order is granted by the court, the property
settlement can be decided by mutual agreement, mediation or
by the court. The property settlement covers the division of the
former couple's property and can be carried out as soon as you
decide to separate.
Usually the big ticket items, such as the couple's house, are
high on the agenda. However, it is important to consider the
broad overview of:
• the treatment of capital gains tax (CGT) when a property is
transferred from one former spouse to the other as a result of a
property settlement; and
• ways in which the former couple's superannuation fund may
be divided.
Capital Gains Tax
If you transfer a property to your former spouse as the result of
a divorce, then the normal rules relating to CGT generally will
not apply. This means you will be able to disregard the capital
gain or loss that otherwise would be subject to CGT. If, as the
result of a divorce, you receive an asset, such as the family
home, you will be considered to have made the capital gain or
loss only when you subsequently sell the home. The“cost base”
of a property is the original cost of the property when you
bought it. If you receive a property from a divorce settlement,
then this cost base will be transferred to you for the purposes
of CGT calculation if and when you subsequently sell the
property.
Superannuation
Your property settlement should include what happens to any
superannuation funds you and your former partner have. How
a superannuation fund is divided between you and your
former spouse will depend on whether a super fund is regulat-
ed by the Australian Prudential Regulation Authority (APRA) or
if it is a self-managed superannuation fund (SMSF). Most
people are members of an APRA-regulated fund.
APRA-regulated super fund
How an APRA-regulated super fund is divided will depend
upon a number of factors, including:
• the rules of the fund itself; and
• the agreed property settlement between the former spouses;
If you receive an interest in your former spouse's super fund, it
generally will be in the form of either:
• a lump sum;
• a percentage of the income stream, once the super fund starts
paying out the money on the retirement of your former
spouse; or
• a new super fund created from your percentage interest in
your former spouse's super fund.
The law states the tax-free and taxable components of any
interest you receive in your former spouse's super fund must
be calculated before the interest is transferred to you. How
taxable interest in your former spouse's super fund will be
• the rules of the fund; and
• how you have taken the interest, e.g., in a lump sum.
We recommend you obtain professional advice to determine
your tax-free and taxable components of your interest and to
carry out a calculation on the tax rate of the taxable compo-
nent.
A SMSF fund
If you are a member of a SMSF, then how your superannuation
will be divided between you and your former spouse and how
it will be taxed will depend on a number of factors, including
the fund’s rules. We recommend you obtain professional
advice to ensure your property settlement complies with the
rules of your fund.
There are serious consequences for your fund if you do not act
in accordance with your obligations as a member. These
include your fund being deemed non-compliant and, subse-
Next steps
If you are in the process of negotiating your property settle-
ment it is important to consider the division of superannuation
property from a divorce.
It is preferable to come to a mutual agreement relating to your
property settlement. This way you maintain control over its
terms. Research has shown former couples are more likely to
comply with a mutually agreed property settlement. If you
cannot agree, then the court will impose a legally binding
settlement on you and your former spouse.
We recommend you consult a lawyer as soon as you realise
your relationship has irretrievably broken down. Then you can
understand your rights from the outset. Owen Hodge Lawyers
would be happy to help.
OVER 60 YEARS OF TRUSTED EXPERIENCE PAGE 7
8. PAGE 8 OWEN HODGE LAWYERS
Taxation and
Deceased Estates
What You Need to Know
9. A deceased estate trust return must be lodged in each
income year until the deceased estate is fully administered.
Special progressive trust tax rates will apply for deceased
estates with a particularly prolonged administration.
Generally, an executor cannot distribute the deceased estate
liabilities have been discharged.
An executor may have to pay tax on the income from a
the sole claim on the estate’s income but is under the age of
a deceased estate during the deceased estate's administra-
tion. However, in certain circumstances, the executor has
-
administration, then please contact Owen Hodge Lawyers.
Government Loans and Levies
If the deceased person had any government student loans,
such as loans from the Higher Education Loans Program
(HELP) or the Student Financial Supplement Scheme (SFSS),
the deceased estate may be subject to a compulsory
repayment. Any outstanding HELP or SFSS loans after the
date of death are cancelled. The Medicare Levy/surcharge is
payable in the same way as if the income from the deceased
Capital Gains Tax
Generally, capital gains made on an asset acquired by the
deceased estate on or after 20 September 1985 are not
subject to capital gains tax if the asset passes either to the
Superannuation
estate's superannuation policy, it is called a super death
recommend you obtain professional advice on whether it is
subject to taxation.
Employment Termination Payments
The deceased estate may include certain termination
payments made by the deceased person's employer. The
law surrounding the taxation of an employment termination
-
mend you obtain professional advice to determine whether
you will need to pay tax on it.
When a person dies, all of their assets are called their deceased
estate. Assets can include money in the bank, shares, personal
possessions and real estate. The person who organises the
distribution of the deceased estate usually is named in the will
and is called the executor or administrator. If no executor is
named, then the estate is administered by the court.
The executor needs to consider many factors when organising
the distribution of the deceased estate, including whether any
taxable.
Probate and Authority
Before an executor can administer the deceased estate, he or
she must be granted probate. Probate is the legal authority
given by the court to the executor to administer the deceased
estate.
In addition, an executor will not be able to deal with the tax
Executor's Responsibilities
An executor has many responsibilities in relation to the
deceased estate. In relation to taxation, the executor must:
• lodge any previous tax returns on behalf of the deceased
person, if necessary;
• lodge a trust income tax return for every income year until the
estate is fully administered, if necessary; and
distribution of the deceased estate including, in some circum-
stances, paying tax on their behalf.
Tax Returns
It may be necessary to lodge any previous tax returns on behalf
of a deceased estate may be required, for example, if the
deceased person earned income that exceeded the tax-free
behalf of a deceased estate. If no tax return is required, then the
All income earned before the deceased's death should be
return. Losses may not be carried over into the deceased estate.
return will lapse.
Income earned by the deceased estate after the person's death
should be included in the deceased estate's trust return.
OWEN HODGE LAWYERS - OVER 60 YEARS OF TRUSTED EXPERIENCES PAGE 9
Disclaimer : The above information is for reference only. Owen Hodge Lawyers does not guarantee, and accepts no legal
responsibility whatsoever (including negligence) arising from or in connection to, the accuracy, reliability,
currency, correctness or completeness of any part of this material. Users must exercise their own skill and care
with the respect to their use of the information contained in this material.
For further information on deceased estate and taxation, please contact your local accountant.
10. SMSFs Investing in Property:
the Laws and Regulations
PAGE 10 OWEN HODGE LAWYERS
Funds acquire property either by using assets within the fund
as a deposit and borrowing money to pay for the property; or
by using the assets in the fund to purchase the property in the
fund’s name.
There are restrictions on the type of property that can be
purchased and all rules for SMSF investing must be followed.
For example, you cannot buy a property from a related party of
a member and the property must be intended as an invest-
associated with a real estate investment through a self-man-
aged super fund also will vary depending upon whether the
property is local or overseas.
the investment include:
Your SMSF must be established and ready to make
the real estate purchase.
The SMSF must be established prior to signing a contract to buy
real estate. All trustees and members must have signed and
dated the SMSF and a clear investment strategy must have
been developed. An SMSF bank account should be established.
Enough money should have been deposited into the account
to pay for all costs and fees associated with the real estate
transaction, including the deposit.
Your investment must meet the sole purpose test:
The investment being made must be used solely for the
investment in a residential property for you or your family
members to live in and you cannot rent the property to a fund
member or related party. If you purchase a rental property and
you or your family stay in it - even for a vacation -without
paying rent, this can contravene the sole purpose test. Phone,
GPS and credit card records showing you stayed in the property
retirement. It would be up to you prove you didn’t use the
property as a personal vacation home.
You must follow special rules for borrowing.
The Superannuation Industry (Supervision) Act creates a
general rule against borrowing, but an exemption is made
to allow the fund to invest in real estate. Limited Recourse
Borrowing Arrangements are possible, provided the
borrowed funds are used to acquire either a single asset or
a collection of assets treated as a single asset (these must
have the same market value). The borrowed funds must not
be used for improvements of the assets and must be used
to purchase assets the fund would be allowed to acquire
with its own money. SMSF property loans usually cost more
than other property loans, so be sure to factor this added
cost into your investment.
You can lease the property back to your business,
but there are restrictions.
Buying a property and leasing it back to a business is one of
the most common real estate investments made using an
SMSF. However, if you buy a property and lease it back, the
lease terms must be commercially competitive and you
must make payments in full and on time every month just
as you would with any other landlord. You still must satisfy
the sole purpose test and regular valuations must be done
on the property, which can be time-consuming and costly.
You must follow rules for in-house assets. Gener-
percent of a fund’s total assets.
An in-house asset is an investment in or loan to a related
party of the fund; an investment in a related trust of the
fund; or an asset in your fund that you have leased to a
related party. If you invest in property overseas, some
countries discourage foreign investments and will require
you to hold the property in a company in the foreign
country.
You’ll need to establish a company within that country that
your SMSF trustee then buys shares of, so the share capital
investment in the shares of the overseas company could be
percent limit.
because your super fund typically is taxed at a lower rate
than your personal rate (the tax rate is just 15 percent).
Buying property through a self-managed super fund (SMSF) is an increasingly popular investment strategy, especially as limited
recourse borrowing agreements (LRBA) have made it possible to invest in real estate even if you do not have enough funds to buy
properties outright. However, if you are going to buy property through your SMSF, it is important to understand the rules and
requirements.
11. OVER 60 YEARS OF TRUSTED EXPERIENCE PAGE 11
Garden Art for Kids - Mount Annan
1st July to 9th July
Narellan Road, Mount Annan NSW 2567
(02) 4634 7935
The Dreamers Market- Parramatta
18th July
Church St, Parramatta NSW 2150
dreamersmarkets@gmail.com
The Dreamers Market is a quarterly market
that thrives on artisan works handmade in
Australia. Stallholders are carefully chosen
to ensure the philosophy of Australian
handmade is upheld.
Brick Man Lego Exhibition
27th June till 12th July
483 George St (cnr Druitt St) Sydney
9092 8448
A variety of Ryan’s LEGO® works will be
displayed including a never seen before
QANTAS A380, a quarter scale LEGO®
Ferrari and a giant space shuttle.
Incredibly, over 5 million LEGO® bricks
make up the works!
Real Insurance Sydney Harbour 10K
12th July
George St, The Rocks NSW 2000
(02) 9282 0413
Free Admission
The Typists - Balmain
8 July to 24 July
94 Beattie St, Balmain NSW 2041
companyofrogues@gmail.com
The Typists is an absurd comedy about
about becoming a lawyer and climbing
the corporate ladder; Sylvia, is a bitterly
single shopaholic who dreams of
marriage.
PBR Australia Nation Finals Sydney
11 July
35 Harbour St, Darling Harbour NSW 2000
jackie@pbraustralia.com
It's a showdown like no other - Twenty-two
riders all eager for glory as they strive to
overcome the power of the 52 most extreme
bucking bulls in a head to head battle of power,
at a time.
What’s On in Sydney
Nurture your kids with nature at this
school holiday workshop. With help from
Garden to collect seed, leaves and grasses
and bring them back to the workshop to
create some beautiful nature art.
The Sydney Harbour 10k and 5k is back,
sponsored by Real Insurance, and giving
you the chance to run around the
fast course.
The 5 Smartest Ways
to spend your tax refund
Tax refund time is a joyful time when you may get a large sum
things you can do with the money:
• Pay down your debt: If you have credit card debt, personal
loan debt or other money owed, your tax return can go a long
way towards paying down the balance. The less you owe, the
lower your interest and the more quickly you can become debt
free.
• Set money aside for an emergency: It is a good idea to have
account in case of an emergency such as a job loss or an illness.
This should include the money you need to pay for food,
utilities and your mortgage costs. If you do not already have an
emergency fund, get one started with your tax return.
• Invest for the future: Consider setting aside the money
towards your retirement costs or towards a fund for your child’s
education. Investing the money from your tax return lets you
take advantage of compound interest.
• Improve your home: Your home is an investment and making
it better is not only nice for you but also can help if you ever
have to sell it.
upgrading to newer models that use less power.
• Make sure your insurance needs are met. The superannuation
you have may not be enough to cover your family’s expenses or
your costs of living if you become permanently sick or pass away
to pay for a policy and pay your premiums so you will be covered.
While you may want to set aside a little of your tax refund to have
some fun, don’t spend it all on a big vacation and have nothing to
12. INDIVIDUAL AND COMMERCIAL LAW SPECIALISTS
Enhancing the lives of our clients by providing
for their financial and legal requirements in the
acquisition of wealth, protection and management
of assets and the transfer of wealth throughout
generations.
CALL
1800 770 780
VIEW
www.owenhodge.com.au
VISIT
Sydney Office
Level 3, 171 Clarence Street, Sydney NSW 2000
Hurstville Office
Level 2, 12-14 Ormonde Parade, Hurstville nsw 2220